CO129-442 - Governor Sir May - 1917 [4-6] — Page 106

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subjects. This is in accordance with the Secretary of State's

instructions contained in his telegram of the 10th August, 1916,

Section 10 introduces a power of disclaimer, modelled on

the power of disclaimer in bankruptcy. Any person injured

·

by the disclaimer will be treated as a creditor of the alien

enemy to the extent of such injury, and a right to obtain the

decision of the Court on the amount of damage suffered is recog- nised. It will be noticed that sub-clause (3) provides that

where a liquidator has sub-let the premises with the consent of

the lessor the latter shall not be entitled to distrain on

such premises except for the rent payable under the sub-lease, and shall not be entitled to re-ganter except for breach of

It is anticipated some covenant contained in the sub-lease, that the power conferred by the section will be required only

in the case of two or three leases, if at all.

Section 11 provides machinery for compelling secured cre-

On such realisation ditors to realise their securities.

the secured creditor is to retain the amount to which he is

entitled under the terms of the security and is to pay the balance to the liquidator. In case of dispute as to the

It is

amount to which the secured creditor is entitled the latter has a right to a decision of the Court on the point. of course possible that in some cases, owing to contingent liabilities, it will not be possible at present to define

secured creditor is entitled, exactly the amount to which the and in such cases it may be necessary that the total proceeds should continue to be held by the secured creditor, if the total liability, ascertained and contingent, exceeds the amount

of the proceeds.